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Revenue
 3 Months Ended
Mar. 31, 2021
Revenue Recognition and Deferred Revenue [Abstract]  
Revenue
4. Revenue
A. Revenue from Product Sales
We offer a diversified portfolio of products which allows us to capitalize on local and regional customer needs. Generally, our products are promoted to veterinarians and livestock producers by our sales organization which includes sales representatives and technical and veterinary operations specialists, and then sold directly by us or through distributors, retailers and e-commerce outlets. The depth of our product portfolio enables us to address the varying needs of customers in different species and geographies. Many of our top selling product lines are distributed across both of our operating segments, leveraging our research and development (R&D) operations and manufacturing and supply chain network.
Over the course of our history, we have focused on developing a diverse portfolio of animal health products, including medicines, vaccines and diagnostics, complemented by biodevices, genetic tests and a range of services. We refer to a single product in all brands, or its dosage forms for all species, as a product line. We have approximately 300 comprehensive product lines, including products for both companion animals and livestock across each of our major product categories.
Our major product categories are:
•vaccines: biological preparations that help prevent diseases of the respiratory, gastrointestinal and reproductive tracts or induce a specific immune response;
•parasiticides: products that prevent or eliminate external and internal parasites such as fleas, ticks and worms;
•anti-infectives: products that prevent, kill or slow the growth of bacteria, fungi or protozoa;
•dermatology products: products that relieve itch associated with allergic conditions and atopic dermatitis;
•other pharmaceutical products: pain and sedation, antiemetic, reproductive, and oncology products;
•medicated feed additives: products added to animal feed that provide medicines to livestock; and
•animal health diagnostics: portable blood and urine analysis systems and point-of-care diagnostic products, including instruments and reagents, rapid immunoassay tests, reference laboratory kits, blood glucose monitors and reference laboratory services.
Our remaining revenue is derived from other non-pharmaceutical product categories, such as nutritionals and agribusiness, as well as products and services in biodevices, genetic tests and precision livestock farming.
Our companion animal products help extend and improve the quality of life for pets; increase convenience and compliance for pet owners; and help veterinarians improve the quality of their care and the efficiency of their businesses. Growth in the companion animal medicines, vaccines and diagnostics sector is driven by economic development, related increases in disposable income and increases in pet ownership and spending on pet care. Companion animals are also living longer, deepening the human-animal bond, receiving increased medical treatment and benefiting from advances in animal health medicine, vaccines and diagnostics.
Our livestock products primarily help prevent or treat diseases and conditions to allow veterinarians and producers to care for their animals and to enable the cost-effective production of safe, high-quality animal protein. Human population growth and increasing standards of living are important long-term growth drivers for our livestock products in three major ways. First, population growth and increasing standards of living drive demand for improved nutrition, particularly through increased consumption of animal protein. Second, population growth leads to greater natural resource constraints driving a need for enhanced productivity. Finally, as standards of living improve and the global food chain faces increased scrutiny, there is more focus on food quality, safety, and reliability of supply.
The following tables present our revenue disaggregated by geographic area, species, and major product category:
Revenue by geographic area
Three Months Ended
March 31,
(MILLIONS OF DOLLARS)20212020
United States$933 $786 
Australia57 43 
Brazil74 63 
Canada46 40 
Chile34 23 
China123 66 
France35 29 
Germany38 34 
Italy25 21 
Japan47 41 
Mexico33 32 
Spain31 28 
United Kingdom69 55 
Other developed markets111 87 
Other emerging markets199 166 
1,855 1,514 
Contract manufacturing & human health16 20 
Total Revenue$1,871 $1,534 
Revenue by major species
Three Months Ended
March 31,
(MILLIONS OF DOLLARS)20212020
U.S.
Companion animal$658 $499 
Livestock275 287 
933 786 
International
Companion animal418 298 
Livestock504 430 
922 728 
Contract manufacturing & human health16 20 
Total Revenue$1,871 $1,534 
Revenue by species
Three Months Ended
March 31,
(MILLIONS OF DOLLARS)20212020
Companion Animal:
Dogs and Cats$1,016 $746 
Horses60 51 
1,076 797 
Livestock:
Cattle399 370 
Swine190 157 
Poultry131 148 
Fish37 26 
Sheep and other22 16 
779 717 
Contract manufacturing & human health16 20 
Total Revenue$1,871 $1,534 
Revenue by major product category
Three Months Ended
March 31,
(MILLIONS OF DOLLARS)20212020
Vaccines$413 $349 
Parasiticides390 255 
Anti-infectives321 280 
Dermatology248 197 
Other pharmaceuticals226 197 
Medicated feed additives112 125 
Animal health diagnostics89 60 
Other non-pharmaceuticals56 51 
1,855 1,514 
Contract manufacturing & human health16 20 
Total Revenue$1,871 $1,534 
B. Revenue from Contracts with Customers
Contract liabilities reflected within Other current liabilities as of December 31, 2020 and December 31, 2019, and subsequently recognized as revenue during the first three months of 2021 and 2020 were approximately $3 million. Contract liabilities as of March 31, 2021 and December 31, 2020 were approximately $14 million and $13 million, respectively.
Estimated future revenue expected to be generated from long-term contracts with unsatisfied performance obligations as of March 31, 2021 is not material.